(in
1 USD
100 RON
1 BGN
100 RSD
100 ALL
1 BAM
100 IDR
Coun
U.S.
Roma
Bulga
Alban
Bosni
He
2012
0.757920
22.499719
0.511292
0.879353
0.716384
0.511292
0.007865
2011
0.772857
23.130479
0.511292
0.955657
0.719787
0.511292
0.008524
2010
0.748391
23.463163
0.008332
Av
2012
0.778331
22.42504
0.511292
0.883939
0.719373
0.511292
0.008302
2011
0.718391
23.589913
0.511292
0.980873
0.713878
0.511292
0.008192
2010
0.754318
23.740563
0.008304
Intangible Assets
Intangible assets include trade names, customer relationships and favorable lease rights that have been acquired in business
combinations (unfavorable lease rights are recognized as "Other liabilities" and released in analogy with SIC 15 Operating
Leases - Incentives), computer software, various licenses and prescription files separately acquired. Separately acquired
intangible assets are initially recognized at cost, while intangible assets acquired as part of a business combination are
measured initially at fair value (see "Business Combinations and Goodwill"). Inta ngible assets acquired as part of a business
combination that are held to prevent others from using them ("defensive assets") - often being brands with no intended future
usage - are recognized separately from goodwill, as required by IFRS 3. S uch assets are not used by the Group, but prevent
others from using them and are therefore amortized over the expected useful life, which will depend on the facts and
circumstances surrounding the specific defensive asset.
Expenditures on advertising or promotional activities, training activities and start-up activities, and on relocating or reorganizing
part or all of an entity are recognized as an expense as incurred, i.e., when Delhaize Group has access to the goods or has
received the services in accordance with the underlying contract.
Intangible assets are subsequently carried at cost less accumulated amortization and accumulated impairment losses.
Amortization begins when the asset is available for use as intended by management. Residual values of intangible assets are
assumed to be zero and are reviewed at each financial year-end.
Costs associated with maintaining computer software programs are recognized as an expense as incurred. Development costs
that are directly attributable to the design and testing of ide ntifiable and unique "for -own- use software" controlled by the Group
are recognized as intangible assets when the following criteria are met:
it is technically feasible to complete the s oftw are product so that it will be available for use;
management intends to complete the s oftw are product and use it;
there is an ability to use the software product;
it can be demonstrated how the s oftw are product will generate probable future economic benefits;
adequate technical, financial and other resources to complete the development and to use the s oftw are product are
available; and
the expenditure attributable to the s oftw are product during its development can be reliably measured.
Directly attributable costs capitalized as part of the s oftw are product include s oftw are development employee costs and directly
attributable overhead costs. Oth er deve l opment expenditures that do not meet these criteria are recognized as an expense as
incurred. Development costs recognized in a previous reporting period as an expense are not recognized as an asset in a
subsequent period.
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. The useful lives of
(internally and externally developed) intangible assets with finite lives are reviewed annually and are as follows:
Prescription files 15 years
Favorable lease rights Remaining lease term
Customer relationships 5 to 20 years
Computer s oftw are 3 to 8 years
Other intangible assets 3 to 15 years
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually and when there is an
indication that the asset may be impaired. The G roup believes that acquired and used trade names have indefinite lives because
they contribute directly to the Group's cash flows as a result of recognition by the customer of each banner's characteristics i n
the marketplace.
78 DELHAIZE GROUP FINANCIAL STATEMENTS'12
